So you’ve taken the first step and found a tenant for your commercial property, but what happens next? How is being a landlord for a commercial property different from residential property? Here are the top 5 things to keep in mind as recommended by Dominic Lambrinos, founder of Chifley Securities, commercial mortgage lender.

1. Make sure the lease is correct: The lease is usually a fairly lengthy document containing the rights and responsibilities of both parties. Everything should be noted in the lease terms, including rent, time period, option rights for renewal, maintenance and fit out responsibilities, costs and the address.
2. The tenant pays: In many commercial leases the tenant will pay the expenses associated with the property. Landlords have the rights to make the tenant pay for utilities, water, taxes and levies so its important that this is all clearly noted in the document.
3. Maintenance falls with the tenant: Anything to do with the structure is usually the landlord’s responsibility, whereas fit-out and maintenance are the responsibility of the tenant.
4. Make good: Leasing documentation should clearly state provisions for the tenant to make good upon the lease ending. It is commonly the responsibility of the tenant to ‘make good’ – returning the property to the condition it was before the uptake of the lease.
5. Know your rights: Every state has different laws around leasing that relate to payment defaults, debts and eviction. Chifley Securities recommends talking to an experienced legal practitioner before taking any action against a tenant. It is a good thing is for landlords to understand that they are running a business, they are in the business of renting out commercial property.

Follow these 5 steps explained above to enable a smooth journey as a landlord for commercial property.